Daily Index Cycle update

The main indexes all closed significantly higher, climbing between 1.3-2.0%. There are bullish engulfing candles on most indexes, and it was certainly a very bullish way to end the year. The VIX absolutely confirmed the index gains, closing some 20% lower.


IWM

Dow

Sp'daily5

Transports

Summary

First, let me say...

Happy New Year! Sincerely, my very best wishes to all of you for 2013.
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As for those indexes, those are obviously important gains to acknowledge, but they could merely be part of a small wave'2 bounce - part of a larger wave to the downside - as the monthly charts STILL suggest.
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I will note a particularly bullish issue is that the more volatile - and often the leader indexes, Rus'2000 (see IWM), and the Transports, are already very close to taking out there recent highs. A break over these highs could be a warning that my bearish outlook will not pan out.

As ever...it will be important to keep multiple scenarios in mind.
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A little more later...